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European equities are marginally offside as traders digest a weekend of continental politics that saw Moody’s deliver a Brexit-inspired UK debt sovereign downgrade, new French President Macron struggled in Senate elections and incumbent German Chancellor Merkel held onto power (fourth term), but with a weakened hand and likely complicated coalition negotiations looming. Weaker resulting EUR, buoying DAX, but pushing GBP higher vs EUR & USD, hurting UK 100 .
The UK UK 100 is lower on weakness among heavyweights HSBC & STAN (Asian uncertainty), RDSb (oil rally slowed), BATS (GBP strength), RIO & AAL (metal under pressure from USD rally), BARC & LLOY (Moody’s UK rating cut). Offering insufficient buoyancy are BT (bounce, LT support), AZN (drug filing news) and DGE (extending bounce).
The German DAX is just positive as gains for Lufthansa, consumer goods pair Beiersdorf & Bayer, and exporters Merck and Adidas (weak EUR) outweighs losses utility RWE (green coalition risk) and financials trio Commerzbank, Deutsche Bank & Munich Re (political risk).
The UK Index 100 is off its lows but remains hindered by 7300. The DAX 30 holds a shallow rising channel around 12600. Dow Jones Futures have edged back towards 22300 again. Gold is stuck below $1300, in a clear down-channel.
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The UK Index 100 is off its lows but remains hindered by 7300.
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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The DAX 30 holds a shallow rising channel around 12600.
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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Dow Jones Futures have edged back towards 22300 again, but remain in an overall uptrend just shy of record highs.
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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Gold is stuck below $1300, in a clear down-channel. Beware RSI up from oversold.
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
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